Genshin Impact Developer Fined $20M for Loot Box Issues

Genshin Impact's publisher, Hoyoverse, has reached a significant settlement with the United States Federal Trade Commission (FTC). As part of the agreement, Hoyoverse will pay a hefty fine of $20 million and will no longer be allowed to sell loot boxes to teenagers under the age of 16. This decision comes after the FTC's investigation into the company's practices.

In a press release, the FTC announced that Hoyoverse has committed to "pay $20 million and to block children under 16 from making in-game purchases without parental consent." This move is part of a broader effort to protect younger players from potentially harmful in-game spending.

Samuel Levine, the Director of the FTC's Bureau of Consumer Protection, stated that Genshin Impact had "deceived children, teens, and other players into spending hundreds of dollars on prizes they stood little chance of winning." Levine emphasized that companies employing "these dark-pattern tactics will be held accountable," particularly when they target young children and teenagers.

The FTC's main allegations against Hoyoverse include violations of the Children's Online Privacy Protection Rule. The developer is accused of marketing Genshin Impact to children and collecting their personal information, as well as misleading players about the odds of winning "five-star" loot box prizes and the costs associated with opening loot boxes.

According to the FTC, the virtual currency system in Genshin Impact is confusing and unfair, obscuring the true cost of obtaining "five-star prizes." The agency highlighted that children have spent hundreds to thousands of dollars in attempts to win these coveted items.

As part of the settlement, Hoyoverse is required to take several additional steps. These include disclosing the odds and exchange rates for its virtual currency, deleting personal information collected from children under 13, and ensuring compliance with the Children's Online Privacy Protection Act (COPPA) moving forward.